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China’s SWF Makes U.K. Buy
China’s sovereign wealth fund, China Investment Corp. (CIC), has acquired 8.68 percent of the company behind U.K. utility group Thames Water. Thames Water was acquired in 2006 by Kemble Water, a consortium of investors led by Australian bank Macquarie. CIC said it bought the stake through a wholly owned subsidiary.
This is the sovereign wealth fund’s first major share purchase in the United Kingdom following a recent visit to China by U.K. Chancellor George Osborne.
Thames Water is the United Kingdom’s largest water and sewerage company, serving about 14 million customers.
CIC chairman Lou Jiwei recently said the sovereign wealth fund was interested in investing in European and U.S. infrastructure.